Tax perks, subsidies and loan deferral for businesses hit by floods
Ljubljana, 24 August - An emergency post-flood reconstruction bill that the government adopted on Thursday brings a number of measures benefiting business. These include furlough subsidies, faster hiring of foreigners, a loan moratorium, and tax waivers.
Businesses affected by floods will be eligible for a 12-month loan moratorium, during which time the interest on the outstanding principal will equal the 12-month EURIBOR rate or the contractual rate, whichever is lower, said Finance Minister Klemen Boštjančič.
The state will subsidise 80% of pay for furloughed workers in companies affected by floods. Workers who helped in the clean-up effort in their companies will get full pay for August.
All self-employed individuals affected by floods will be eligible for aid provided their annual revenue declined by at least 25% compared to the year before, according to Labour Minister Luka Mesec.
Another key measure is faster employment of third-country nationals who do not need a visa to enter Slovenia, which includes all of the Western Balkans except Kosovo.
Once they enter Slovenia, the Employment Service must provide its consent to their work permit within ten days, whereupon administrative units will have a maximum of three months to issue a work permit.
"After the clearance from the Employment Service, they can start working immediately while they wait for the work permit," said Mesec.
This fast-track system will apply only to professions needed in the flood relief efforts and will be in place only for a year.
In another effort to increase the number of people helping in the relief effort, the government plans to invite all unemployed to join public works programmes.
The pay for those who join will be higher than it typically is for public works, ranging from 100% to 120% of minimum wage.
Moreover, the ceiling for pensioners who wish to continue working will be raised from 60 to 90 hours per month.
"The government will invite all pensioners who want to work and make extra money to assist in the reconstruction," Mesec said.
There are a few tax perks as well, most notably a reduced 5% VAT rate for firefighting vehicles and equipment.
Businesses which provide temporary shelter to flood victims will have more favourable tax treatment and municipalities can waive the real estate tax for businesses affected by floods.